INDIANAPOLIS -- Two pending lawsuits may slow Shell's plans to sell a substantial number of its Multi-Site Operator (MSO) gasoline stations to its jobbers. Two of those operators have filed lawsuits claiming their bids to buy properties they operate were not properly considered.
Robert Juckniess, owner of RWJ Cos., Indianapolis, claims hisbid for 36 Shell-branded stations was subject to fraudulent manipulation of the bidding process, while Alan Barazi, owner and president of Coral Group Inc., Overland Park, Kansas, is claiming fraud in his efforts to [image-nocss] buy four stores from the oil giant.
Juckniess had no comment on his lawsuit, and attempts to reach Barazi and Shell officials for comment were unsuccessful; however, according to court documents, both companies claim they were encouraged by Shell to make offers on the properties and given reason to believe they would be sold the sites.
Juckniess, however, later learned another buyer (believed to be Alimentation Couche-Tard, according to court documents) was expected to be awarded the Indianapolis sites before the end of 2005. Juckniess subsequently filed a request for a preliminary injunction to prevent termination of his contract with Shell, thus preventing the sale of the property. That request was denied by U.S. District Court Judge David Hamilton on Dec. 28, 2005.
A Shell spokesperson said yesterday that because the injunction was denied, Shell may now proceed with a sale transaction on these sites. Shell hopes to announce the successful bidder and a closing on the sale in the near future.
The spokesperson said Shell is selling 53 of its 54 sites in the Indianapolis area and closing remaining site.
In a separate case in Missouri U.S. District Court, Barazi, a 29-store MSO retailer who has a long history of operating-expense and other issues with Shell, is seeking reimbursement for lost revenue for the four non-strategic location stores sold to Premier Petroleum in May 2005. In late-September 2004. Barazi accepted Shells' counteroffer and entered into an agreement to purchase the [sites] from Shell, said Barazi's complaint. Shell refused to honor this clear and valid agreement with [Barazi].
In its response to Barazi's complaint, Shell admitted it sold the four stores in question to Premier Petroleum without Barazi's permission, but denied ever having come to an agreement to sell the site to Barazi.
Shell's move to sell many of its MSO stores to jobbers is part of a larger effort to shift its focus from retailing to wholesale operations.
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